Klöckner & Co: Operating result climbs steeply in the first half of 2008, record performance expected for entire year
At 3.6 billion, sales increased 12% year-on-year Sales volume climbed 5.5% to 3.5 million tons EBITDA rose 65.0% to 321 million Consolidated net profit for the period increased by 155.2% to 178 million Conversion into a European Company (SE) concluded Continued focus on core business
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Duisburg (euro adhoc) - Duisburg, August 13, 2008 - After the Klöckner & Co Group performed exceptionally well in Q1 2008, the company´s position improved even further during Q2 2008 as a result of continuing favorable market conditions for steel and metal products. In H1 2008, sales volume of the Klöckner & Co Group totaled - particularly as a result of acquisitions - 3.5 million tons, 5.5% above the level of a year earlier. Sales climbed to EUR3.6 billion and rose - primarily as a result of prices - by 12.0% year-on-year. EBITDA reached EUR321 million during the period, 65.0% higher than year-earlier results. The consolidated net profit for the period increased by 155.2% to EUR178 million during H1 2008. "We have successfully turned increased prices into higher gross margins. This is the basis of our satisfying earnings growth," said Dr. Thomas Ludwig, Chairman of the Management Board of Klöckner & Co SE.
Against the backdrop of continuing positive business conditions for steel distribution, Klöckner & Co expects that EBITDA before one-offs will exceed EUR500 million for fiscal year 2008. Including non-recurring income from divestments in Canada and Switzerland in the third quarter, reported EBITDA is expected to double year-on-year to more than EUR770 million and the consolidated net profit for the period is forecast to triple to more than EUR500 million. "The record result expected for the entire year of 2008 and the high inflow of funds create an excellent platform for the Group´s strategic growth," Dr. Ludwig said.
With the entry into the Commercial Register of the Duisburg Municipal Court on August 8, 2008, the transformation of Klöckner & Co Aktiengesellschaft into a European Company (Societas Europaea, SE) was concluded. "The legal form underscores the international and open corporate culture of the Klöckner & Co Group and, as a result, represents a major step in the company´s history," Dr. Thomas Ludwig said.
In addition, the company was able to move forward with its focus on core business activities: the acquisition of Temtco Steel, a US specialist in heavy-plate distribution, was concluded. The sale of the Canadian subsidiary Namasco Ltd. to the Canadian company Samuel, Son & Co. Ltd. was completed in July 2008. A contract signing to sell the wholly owned subsidiary Koenig Verbindungstechnik (KVT) to the private equity firm Capvis via the Swiss subsidiary Debrunner Koenig Holding AG (DKH) also took place in July. The sale is still subject to approval by anti-trust authorities.
About Klöckner & Co: Klöckner & Co is the largest producer-independent distributor of steel and metal products in the European and North American markets combined. The core business of the Klöckner & Co Group is the storage and distribution of steel and non-ferrous metals. About 210,000 active customers are supplied through more than 260 distribution locations in 15 countries in Europe and North America. During the financial year 2007, the Company achieved sales of approximately EUR6.3 billion with more than 10,000 employees.
The shares of Klöckner & Co SE are admitted to trading on the official market segment (Amtlicher Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) with simultaneous admission to the sub-segment (Prime Standard) to the official market with further post-admission obligations. ISIN: DE000KC01000; WKN: KC0100; Common Code: 025808576. Klöckner & Co shares are listed in the MDax® Index of Deutsche Börse.
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Further inquiry note:
Contact persons:
Peter Ringsleben, Claudia Uhlendorf - Corporate Communications
Peter Ringsleben
Phone: +49-203-307-2800
Fax: +49-203-307-5060
E-mail: peter.ringsleben@kloeckner.de
Claudia Uhlendorf
Phone: +49-203-307-2289
Fax: +49-203-307-5103
E-mail: claudia.uhlendorf@kloeckner.de
Claudia Nickolaus - Investor Relations
Phone: +49-203-307-2050
Fax: +49-203-307-5025
E-Mail: claudia.nickolaus@kloeckner.de
Branche: Metal Goods & Engineering
ISIN: DE000KC01000
WKN: KC0100
Index: MDAX, CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / free trade
Original content of: Klöckner & Co SE, transmitted by news aktuell